How to recover U.S. economy? Speaks Soros

On Monday speaking to U.S. Conference of Mayors, hedge fund manager and billionaire philanthropist George Soros told that the bailout plan of the U.S. government to recover the country economy is necessary to the American people yet it cannot stop the economic decline. He noted that the funds are not enough to turn the situation into the right routine, adding that $350 billion remnant of the TARP will not be enough.

Soros said that the U.S. government plan launched last week will just help state and local governments balance their budgets and preserve important social services. He also pointe to the fact that the TARP funds were used in a "haphazard and capricious way" and "without proper planning”. Thus he thinks that the economy will need more money. In his opinion the money should be used to recapitalize banks but this will require more funds than the entire $700 billion.

In order to prevent the Great Depression of the early 20th century, Soros says, the United States needed "radical and unorthodox policy measures". He said that the country have to create more money to offset the collapse of credit and then rapidly pull that cash out of the system when inflation emerges.